Capital One BIG interest rate hike

selecta_c

Closed my account today.Had it for just over a year but the limit was very poor.

sde

Got a letter yesterday aswell. Going from 11% to 18.5%. Not the worst 1 here but still prompted me to get an 8% loan from tesco to clear the balance. Keep the card open for extreme emergencies now instead of treats as previous

Locke

My statement arrived today with no mention of an interest hike.

Am I right in saying that if it does go up I can contact them, cancel the card and remain paying off the balance monthly at the interest rate I've currently got?

sde

Locke wrote: »

My statement arrived today with no mention of an interest hike.

Am I right in saying that if it does go up I can contact them, cancel the card and remain paying off the balance monthly at the interest rate I've currently got?

Yes. If its the same as my letter then you have to contact them by November 23rd or you will go on to the new higher rate which will kick in on your december statement

PS- Its a seperate letter. Wont be mentioned on your statement

Gorgeous_George

gfowler wrote: »

Got one to this morning.

I've asked them to raise a complaint as they state it's due to increased costs of borrowing.

On checking the LIBOR rate (the rate at which banks borrow money) currently stands at 7+1/4 % points above base, so currently 0.5725% (as of last Friday). Why do companies choose to LIE to their customers, why didn't they say that they wanted to increase their margins???

I've opted out, so will pay back using old rate. I'm sure many people coming home from work will receive this increase letter.

My input.

Gareth

The cost of borrowing is much more than LIBOR.

Believe it or not but some people pay their cards in full each month and enjoy 0% for upto 6 weeks. And free purchase protection, free statements etc. It all needs to be paid for by those who pay interest (possibly a case for the costs being unfair - like when people who go overdrawn subsidise those that don't).

Some people fail to pay their debts by either going bankrupt or disappearing/hiding. Their debts need to paid by those who pay interest.

Credit Card fraud needs to be funded. Guess who pays.

GG

bingy_burge

I thought the card companies made money out of those who pay in full as they charge fees to merchants.

I would have thought they are covering increased costs and loss from people who don't pay.

mummytummy

i have just paid my balance off :j but dh got his letter today. He's gone from 8.730% to 16.09% after his December statement:eek: time to close it i think!

kindofaverage

please - can I ask - although I don't use it much but if I were to leave a balance on it, the interest would go up to this new higher one? But if I were to ring them b4 the date in november and cancel the card, it will remain at the current interest rate?
Do you also have to write in to cancel the card and return it please?

bloodofareptile

Got a letter myself today. I've got the sub-prime card as I'm newish to the UK (I'm an American, moved over in 2007) and had zero credit rating.

Am annoyed, but it doesn't affect me as this is a credit-building card - I pay it off in full. How embarrassing to have a 40% interest rate though!

My credit back home is great. :-/

duncanda

Got the letter yesterday. I got my Cap One card 4-5 years ago and I seem to remember that the deal was a fixed rate (low) for the life of the card. Can anyone recall if they got the same deal? Interestingly they were being sued in the US a few years ago for sharp practice: http://www.msnbc.msn.com/id/6781155/ns/business-personal_finance/